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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />September 21, 2011 <br />C. Stephen Guyer <br />Chief Financial Officer <br />Colorado Goldfields Inc. <br />7896 South Datura Circle West <br />Littleton, CO 80120 <br />SEP <br />Division of Reclamation <br />Mining and Safety <br />RE: Deficiency Issues for Notice of Intent to Conduct Prospecting, <br />Silver Wing Mine, NOI File No. P- 2011 - 027.',, <br />Dear Mr. Guyer: <br />Office of <br />Mined Land Reclamation <br />STATE OF COLOFADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />On August 24, 2011, the Notice of Intent to Conduct Prospecting Operations (NOI) for the Silver <br />Wing Mine was posted. Please be advised the NOI for the Silver Wing Mine is deficient and the <br />proposed activities may not proceed until all deficiency issues have been addressed to the <br />Division's satisfaction. Pursuant to Rule 5.1.3(b), if the following deficiency issues are not <br />addressed to the Division's satisfaction within 60 days, by November 21, 2011, the Division may <br />terminate the NOI for the Silver Wing Mine. <br />1. The site is a historic pre -law mine with numerous disturbances pre- dating the NOI. The <br />NOI included several photos of the site but did not otherwise include a description of <br />the pre- existing disturbances. Please describe the pre- existing disturbances sufficient to <br />clearly identify pre - permit conditions. <br />2. The NOI included an underground mine map intended to illustrate the geologic <br />structures, mine development and location of significant water course sources beyond <br />the ore zone. The map is not legible. Please submit a full size copy of the underground <br />mine map. <br />3. Colorado Goldfields Inc. (CGI) included laboratory analyses of three water samples taken <br />on June 29, 2011. The sample locations are represented as being taken from the <br />Animas River upstream of the mine, the drainage from the Silver Wing Mine portal prior <br />to reaching the Animas River, and from the Animas River immediately downstream of <br />the mine site. A similar set of samples was procured by the Division's Inactive Mines <br />Program (IMP) during 1997 and 1998. Results of the laboratory analysis are illustrated <br />in the following table. <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />